Analyst Ryan Langston from TD Cowen maintained a Buy rating on Elevance Health (ELV – Research Report) and keeping the price target at $484.00.
Ryan Langston has given his Buy rating due to a combination of factors including the stable outlook for Elevance Health’s Medicaid and Medicare Advantage (MA) segments. The company has managed to maintain its utilization patterns in line with expectations, which supports its full-year guidance. Additionally, the management anticipates stabilization in Medicaid margins in the first half of 2025, with further improvements expected in the latter half of the year.
Another factor contributing to the Buy rating is the company’s strategic handling of Medicare Advantage, where cost trends are expected to persist but remain manageable. The updated earnings per share (EPS) estimates for 2026 have been slightly increased due to the incorporation of the MA Final Rate Notice, which positively impacts the financial outlook. The price target of $484 reflects a valuation that is at a discount compared to the broader market, suggesting potential upside for investors.
According to TipRanks, Langston is an analyst with an average return of -6.8% and a 35.00% success rate. Langston covers the Healthcare sector, focusing on stocks such as Elevance Health, Acadia Healthcare, and Addus Homecare.
In another report released today, Barclays also maintained a Buy rating on the stock with a $522.00 price target.